UK bankruptcy from Australia - Advice / Info Please

19lottie82

I’m after a bit of advice for a friend.

She bought a flat for £148k on an interest only mortgage just before the housing market collapsed. It is now worth apx £100k, so she is in about £48k in negative equity!

She is now living in Australia, where she has been for the last 3 years. She has a job, a family
And no plans to return to the UK.

The flat is let out but the rent is nowhere near enough to cover the mortgage / service fees, and obviously she can’t sell.

Could she declare herself bankrupt in the UK from Australia, to rid herself of the flat and associated debts, and would this affect her credit outside of the UK? (She is 30 years old at the moment, I don’t know if that makes any difference)

Any info would be useful, thanks you.

IF

Hi 19lottie82, Until another poster can advise further hope this will help.

Foreign Issues.

FAQ - Foreign Issues (IS) - Includes:

How can I make myself bankrupt if I live abroad?
Do the bankruptcy restrictions apply when I go abroad?
Does a bankruptcy order affect my assets abroad?


Best wishes
If...x

19lottie82

Thank you very much if :j

As I said, it's just some info for a friend, so I will pass this on and I think she will find it very useful.

debtinfo

The main question your friend needs to look at is exactly how long she has lived abroad , that may be key in this case

19lottie82

debtinfo wrote: »

The main question your friend needs to look at is exactly how long she has lived abroad , that may be key in this case

3 years. And she has no plans to come back to the UK to live.

StillStanding

I think you have to have filed for bankruptcy within 3 years of moving.

debtinfo

19lottie82 wrote: »

3 years. And she has no plans to come back to the UK to live.

i did mean exactly, as 2 years 11 months could be very different from 3 years 1 month in a case like this, does she work carry on a business in australia, does she consider her renting out her property as her main source of income or business

StillStanding

Also she would have to either fly back to London to present her petition in The High Court or grant power of attorney to one of these "Bankruptcy From Abroad" organisations that can do it on her behalf. They charge around £1200 though. Don't know how it compares with a flight back from Oz.

19lottie82

3 years, is that since she first arrived in oz, or since she got made a perm resident? She is employed, but does not run her own business. The flat is currently let out in the UK but the rent only covers about 50% of the mortgage and service charges. Thanks